Correlation Between Old Westbury and Guidemark(r) World

Can any of the company-specific risk be diversified away by investing in both Old Westbury and Guidemark(r) World at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Old Westbury and Guidemark(r) World into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Old Westbury Small and Guidemark World Ex Us, you can compare the effects of market volatilities on Old Westbury and Guidemark(r) World and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Old Westbury with a short position of Guidemark(r) World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Guidemark(r) World.

Diversification Opportunities for Old Westbury and Guidemark(r) World

0.54

Correlation Coefficient

Old Westbury  Guidemark(r) World

Very weak diversification

The 3 months correlation between Old and Guidemark(r) is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Small and Guidemark World Ex Us in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidemark World Ex and Old Westbury is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Old Westbury Small are associated (or correlated) with Guidemark(r) World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidemark World Ex has no effect on the direction of Old Westbury i.e., Old Westbury and Guidemark(r) World go up and down completely randomly.

Pair Corralation between Old Westbury and Guidemark(r) World

If you would invest  1,435  in Old Westbury Small on April 24, 2025 and sell it today you would earn a total of  354.00  from holding Old Westbury Small or generate 24.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.2%
Values	Daily Returns

Old Westbury Small  vs.  Guidemark World Ex Us

Old Westbury Small

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Old Westbury Small are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Old Westbury may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Guidemark World Ex

Risk-Adjusted Performance

Solid

Over the last 90 days Guidemark World Ex Us has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak technical and fundamental indicators, Guidemark(r) World may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Old Westbury and Guidemark(r) World

The main advantage of trading using opposite Old Westbury and Guidemark(r) World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Guidemark(r) World can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guidemark(r) World will offset losses from the drop in Guidemark(r) World's long position.

The idea behind Old Westbury Small and Guidemark World Ex Us pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.